How much money can I make with Scentsy? Is it possible to create passive income with Scentsy?
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Product Name: Scentsy
Founder: Founded by Heidi & Orville Thompson in 2004
Product Type: MLM
Price: $99 to start
Best For: MLM marketers
Summary: Scentsy is an MLM company that focuses on home-care & personal care products.
Overall Ranking: 5/10
What Is Scentsy
Scentsy is a direct selling company specialising in home and personal fragrance.
It all started in 2004.
Orville and Heidi were on the brink of bankruptcy when they encountered the product line at a home show. They instantly fell in love with it.
On May 1st, 2004, they decided to take a chance by purchasing the Scentsy company. and they moved the company to Meridian, Idaho. Without much money to start with, they did not hire any employee. They made the scented fragrance wax bars themselves from their 400 square foot metal shipping container.
Scentsy joined the U.S. A. Direct Selling Association (DSA) in 2004 and enrolled its first Independent Consultant. Since then, the company has expanded its operations. At the time of writing, Scentsy products are sold by a network of Scentsy Consultants in 11 countries.
Scentsy Product Line
Scentsy’s flagship products are their Scentsy wax bars and warmers. Featuring innovative wickless, flameless candle, it claims to produce no smoke smell, no soot, and no dangerous open flame that could pose a fire hazard.
The way scented candle wax bars slowly melted in a warmer with the heat of a safe low-watt light bulb ensure that no wax will drip down creating mess.
Scentsy claims that their wax is made from the highest quality petroleum-based wax, producing a long-lasting aroma. Instead of burning up and releasing toxins into the air, the wax slowly melts away releasing a pleasant fragrance.
Other than scented wax and warmers, Scentsy has expanded its product line into a lot more areas like:
Laundry – Laundry liquid, scented softener etc…
Cleaning – Kitchen soap, freshener etc…
Personal Care – Bath bomb, body cream etc…
Other accessories – Room spray, diffuser, essential oils etc
How To Make Money Selling Scentsy
Just like any other MLM businesses, there are 2 main ways for you to make money with Scentsy:
> Sell the products and get a commission
> Recruit downline and share the profit from your team sales
Get Started With Scentsy
To get started, you need to purchase the Scentsy Starter Kit for $99 plus tax and shipping. The Starter Kit includes a variety of best-selling warmers, scented wax testers, catalogues, order forms, three months of your own PWS, product samples etc. (content may vary). Basically. everything you need to start your Scentsy business is in there.
Scentsy Compensation Plan
Scentsy Independent Consultants earn between 20 and 36 per cent commissions and bonuses on personal sales and may be eligible for leadership bonuses based on their teams’ sales.
Here is Scentsy compensation plan at a glance:
In order to understand the chart, there are a few terms that you need to know:
> Personal Retail Volume (PRV): The commissionable volume of all products that are personally sold.
> Personal Wholesale Volume (PWV): 75% of the Personal Retail Volume ie. PRV X 75% = PWV
> Group Wholesale Volume (GVW): Total amount of wholesale volume for your entire personal team or group.
> Frontline: The recruits that you personally enrolled in Scentsy which would be your first level, or “Frontline”.
To start earning commission from Scentsy, you have to sell 150 PRV worth of product to be an active Consultant in 1 month within 3 consecutive months.
This is not to be confused with the requirement for you to keep your downline/team and recruits. To do so, you will have to sell or purchase at least 150 PRV in products within 3 consecutive months.
Shooting Star Bonus
There is a special bonus to reward those who excel in their career quickly.
For those who are able to sell 500 PRV points in their first 15 days, they will receive the Shooting Star Enhancement Kit.
To have a better understanding how the whole compensation plan works, check out this video:
The consultants usually promote the products by ‘hosting a party’, During the party, the consultant will showcase Scentsy products, with the intention to sell and recruit others to join their downline.
That is more or less how Scentsy works. On a side note, if you are not keen to host parties, do face to face selling or to gather downlines in order to make money, check out my #1 recommendation where you don’t ever need to recruit a single person but still get to enjoy the passive income!
What I Like About Scentsy
Scentsy has a great line of products and they do have their unique selling point.
It is also a member of the Direct Selling Association (DSA), which give Scentsy a certain level of credibility.
What I Don’t Like About Scentsy
1. How Much Money Can You Really Make With Scentsy?
Here’s the answer that you are looking for…
Below is Scentsy’s Income Disclosure Statement 2017:
As you can see, the majority of the consultants fall into the category of Certified Consultant. And their average annual income?
$801 Per Year!
We haven’t even take into account the cost of running this business – the samples they have to buy, the parties they have to host, the products they bought for themselves due to months that they cannot meet the minimum requirements etc.
To make a full-time income, I’ll say you need to be at least at the Star Director level – which means that only 3% of the consultants actually earn a living from it.
2. High Start-Up Cost
Make money while hosting parties sound really cool. But as I have mentioned earlier. parties are where you show off various products that Scentsy offers, and there is a catch.
The catch is that you will have to first purchase those products in order to bring them to the party.
Those little wax bars and warmers can add up quickly and you may end up spending more than what you have expected.
3. Minimum Sales Requirement
As we have touched on earlier, there is a minimum monthly sales volume you have to meet, else this might happen to you:
This goes to show that in order to make money with Scentsy, you have to keep on working, otherwise, you will lose the earnings of your current rank, or even right to sell as mentioned by this user.
If passive income is what you are looking for, then this is probably not what you are hoping for.
It is easy to see how things can get complicated quickly – juggling between sales, parties, and management of your team. It is by no mean an easy task. Far too often, I have seen many people get involved in MLM thinking that they can just get a few recruits and then sit back collecting money – now we know that it is far from the truth!
Is Scentsy a Pyramid Scheme?
There is a fine line between network marketing and Pyramid Scheme.
While both network marketing and Pyramid Scheme are having a pyramid structure, Pyramid Scheme, in general, refers to businesses of which their main source of income coming from the recruiting system. They have either no retailable products, or their products couldn’t really quite justify the price they are charging.
Obviously, Scentsy has retailable products (wax bars and warmers!), and recruitment is not the only way to make money. Therefore, the good news is that Scentsy is NOT a pyramid scheme.
Although it is possible to make money with Scentsy, it is not something I would recommend you to work with.
In my honest opinion, the best reason for joining any MLM company is when you really love a product, and you want to get your cost covered while making extra money.
If making money is your only reason for joining, forget about it. Losing friends, wasting time and energy is not going to make it worth the money you make. And the worst part, you are still technically ’employed’, you build up nothing for yourself at all. If one day the company get busted, the downline that you have spent so much building will be gone in an instant too.
If you want to create an online business and learn how to make a full-time income, keep on reading because I have good news for you.
All these success stories you have read above come from applying one proven system.
There is no need for inventory, product creation, management of a team, or tapping into your personal network and proposition them to become your prospects. If it sounds good to you, find out more about this system here or click on the blue button below:
What do you think about Scentsy? Share with me your thoughts at the comment section below!